Inventory Valuation Checklist ( FINANCE )

This checklist is designed to ensure accurate and consistent valuation of inventory in financial records, aiding in maintaining financial integrity and compliance with accounting standards.

• Identify Inventory Types

  List all types of inventory held, including raw materials, work-in-progress, and finished goods.

• Determine Valuation Method

  Decide on the inventory valuation method to be used: FIFO, LIFO, or Weighted Average Cost.

• Conduct Physical Inventory Count

  Perform a physical count of inventory to verify the quantities on hand against recorded amounts.

• Verify Inventory Transactions

  Review all inventory transactions for accuracy, including purchases, sales, and adjustments.

• Calculate Inventory Value

  Using the chosen valuation method, calculate the total value of the inventory.

• Review and Reconcile Accounts

  Reconcile inventory accounts with general ledger balances, ensuring consistency across financial statements.

• Document Inventory Valuation

  Prepare documentation for the inventory valuation process, including calculations and justifications for chosen methods.

• Prepare for Financial Reporting

  Ensure that inventory valuation aligns with financial reporting requirements and is ready for inclusion in financial statements.